South Korea Eyes Securities Tax for Tokenized Stocks

The Ministry of Economy and Finance stated that if the Financial Services Commission confirms this classification, taxation could commence immediately. By focusing on economic rights rather than the underlying blockchain technology, the government aims to capture revenue from a sector that has surged to $1.47 billion as of June 8. This represents a 115% increase since the beginning of the year, driven by investor demand for blockchain-based access to companies like Tesla and Nvidia.

Regulators are currently refining guidelines expected in July, which will clarify the status of tokenized ordinary shares. While previous rules focused on fractional ownership of real estate or art, the new interpretation will likely extend to overseas transactions. The ministry indicated that even trades conducted on foreign platforms may fall under domestic tax rules if the assets mirror traditional securities. To enforce this, the National Tax Service is expanding information-sharing agreements with international counterparts, including the U.S. Internal Revenue Service, to track activity on global platforms.